Effective Interest Amortization of Bond Premium or Discount

11. Long Term Liabilities / Effective Interest Amortization of Bond Premium or Discount / Problem 1

Problem 1

What is the present value of a \$2,000 annuity received annually for 5 years at a discount rate of 4%?

\$8,800

\$9,500

\$8,500

\$10,000